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Exchange-rate System between the Czech and Slovak Republics

Author

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  • Katerina Smidkova

    (Czech National Bank)

Abstract

In 1992, the political dissolution of Czechoslovakia highlighted the problem of designing monetary disintegration for two interdependent republics. In this study, the exchange-rate system of the two newly established currencies that was an analogy to the currency union was described. The newly gained potential of independence in monetary and exchange-rate policies was analyzed in this context. The study assessed costs and benefits of the gradual approach to monetary disintegration that was applied in the Czech-Slovak case. The analysis suggested that the careful design with two intermediate stages was superior to a longer maintaining of a common currency or a sudden monetary disintegration.

Suggested Citation

  • Katerina Smidkova, 2003. "Exchange-rate System between the Czech and Slovak Republics," Macroeconomics 0304004, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpma:0304004
    Note: Type of Document - ; pages: 20 . IE CNB Working paper 1994/16
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    References listed on IDEAS

    as
    1. Bofinger, Peter, 1990. "A Multilateral Payments Union for Eastern Europe?," CEPR Discussion Papers 458, C.E.P.R. Discussion Papers.
    2. Frankel, Jeffrey A & Rockett, Katharine E, 1988. "International Macroeconomic Policy Coordination When Policymakers Do Not Agree on the True Model," American Economic Review, American Economic Association, vol. 78(3), pages 318-340, June.
    3. Eichengreen, Barry, 1990. "One Money for Europe? Lessons from the US Currency Union," Department of Economics, Working Paper Series qt6ks1k831, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    4. Masson, Paul R & Taylor, Mark P, 1992. "Common Currency Areas and Currency Unions: An Analysis of the Issues," CEPR Discussion Papers 617, C.E.P.R. Discussion Papers.
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    Cited by:

    1. Fidrmuc, Jan & Horvath, Julius & Fidrmuc, Jarko, 1999. "The Stability of Monetary Unions: Lessons from the Breakup of Czechoslovakia," Journal of Comparative Economics, Elsevier, vol. 27(4), pages 753-781, December.
    2. Benjamin Born & Teresa Buchen & Kai Carstensen & Christian Grimme & Michael Kleemann & Klaus Wohlrabe & Timo Wollmershäuser, 2012. "Austritt Griechenlands aus der Europäischen Währungsunion: Historische Erfahrungen, makroökonomische Konsequenzen und organisatorische Umsetzung," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 65(10), pages 09-37, May.

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    More about this item

    Keywords

    Currency Union Czech Slovak Dissolution;

    JEL classification:

    • E - Macroeconomics and Monetary Economics

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